Texas Roadhouse Inc (TXRH)

Return on total capital

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	353,989	339,069	340,498	331,004	320,197	316,183	302,593	306,403	297,192	252,749	226,027	88,981	23,844	56,859	66,767	167,368	212,023	191,819	182,379	183,363
Long-term debt	US$ in thousands	0	0	—	—	50,000	75,000	75,000	100,000	100,000	190,000	190,000	190,000	190,000	190,000	190,000	190,000	—	—	—	—
Total stockholders’ equity	US$ in thousands	1,141,660	1,103,960	1,082,980	1,055,250	1,012,640	977,575	938,892	1,019,780	1,058,120	1,065,170	1,046,840	993,621	927,505	902,916	868,021	896,292	915,994	893,975	890,852	973,493
Return on total capital		31.01%	30.71%	31.44%	31.37%	30.13%	30.04%	29.84%	27.36%	25.66%	20.14%	18.27%	7.52%	2.13%	5.20%	6.31%	15.41%	23.15%	21.46%	20.47%	18.84%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $353,989K ÷ ($0K + $1,141,660K)
= 31.01%

Over the past five years, Texas Roadhouse Inc has shown a consistent improvement in its return on total capital, reflecting the company's ability to generate profit from its capital investments. The return on total capital has steadily increased from 18.84% at the end of 2019 to 31.01% at the end of 2023. This indicates that the company has become more efficient in utilizing its total capital to generate returns for its shareholders.

The highest return on total capital was observed at the end of 2023, reaching 31.01%, which signifies that Texas Roadhouse Inc has been able to maximize its capital utilization and generate higher profits relative to the amount of capital invested. This steady improvement in return on total capital demonstrates the company's effective management of its assets and capital structure over the years.

Overall, the trend in Texas Roadhouse Inc's return on total capital indicates a positive financial performance and efficient operational management, which bodes well for the company's financial health and long-term sustainability.